What happens if my personal loan servicer changes while I am repaying?

Why servicers change: Lenders sometimes sell loan portfolios or transfer servicing rights to other companies. This is common in mortgage servicing but less frequent with personal loans. Some marketplace lenders (LendingClub, Prosper) have shifted servicers as their business models evolved.

Your rights when servicer changes: Federal law (RESPA applies to mortgages; for personal loans, contract law and CFPB supervision govern) requires written notice at least 15 days before the transfer. The notice must include the new servicer's name, address, payment address, and phone number. You have a 60-day grace period after the transfer during which late payments cannot be charged if you sent payment to the old servicer.

What you need to do: Update your autopay if you set it up with the original lender's bank pull. Update the payee in your bank's bill pay if you pay directly. Confirm your account number with the new servicer - it may change. Check your credit report 1-2 billing cycles later to confirm payments are being reported correctly.

What does not change: Your interest rate. Your remaining balance. Your monthly payment amount. Your payoff date. The original loan terms are contractually binding regardless of who services the loan.

If the original lender shut down: Even if a lender stops operating, your loan obligation continues. The bankruptcy estate or an assigned servicer takes over. You still owe the debt. The loan terms are preserved because they were set at origination and exist as a legal contract independent of the lender's ongoing business.